TaxTMI 
TaxTMI 
2013 (5) TMI 531
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....ada (hereinafter 'society'). A search and seizure operation under section 132 of the Act was carried out in the hands of the assessee on 29-01-1999 and consequent thereto the block assessment was completed in his hands. When the matter reached the stage of the ITAT, the Tribunal set aside the block assessment order for technical reasons and directed the Assessing Officer to reframe the assessment de novo. Accordingly, the assessing officer completed the assessment by determining the undisclosed income at Rs.14,25,947/-. The assessee challenged the block assessment order before learned CIT(A) and got partial relief. Aggrieved by the order of Learned CIT(A), the revenue has filed appeal before us on the issues discussed in the preceding paragraph. 4. The first issue relates to the assessment of following fixed deposits found in the name of the assessee. Sl. No. Name of the Bank Date of Deposit Amount Deposited 1. FDR in SBI, Kakinada 17.03.98 36,294/- 2. FDR in SBI, Kakinada 17.03.98 11,500/- 3. FDR in Andhra Bank, Kakinada 03.03.98 55,000/- 4. TDR in Corporation Bank, Timmapuram 27.09.97 56,579/- 5. TDR in Corporat....
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....hands of the assessee, even if for a moment, it is held that these deposits belong to the assessee. However, the Learned CIT(A) has given a clear finding that the society has accounted for these deposits in its books of account. Further, it was also shown to us that these deposits have also been assessed in the hands of the society. We notice that the explanation of the assessee, from the very beginning, was that these deposits belong to the society and the said explanation stands vindicated by the assessing officer by assessing these deposits in the hands of the society. Under these set of facts, in our view, the Learned CIT(A) was justified in deleting the assessment of these deposits in the hands of the assessee. 7. The next issue relates to the assessment of bank deposit of Rs.45,000/-. During the course of search proceedings, the revenue unearthed a copy of Bank credit advice relating to a deposit of Rs.45,000/-. The date of deposit of the same was taken as 15.12.1995. The assessee explained that the above said deposit was made out of the funds belonging to the society. It was further stated that, upon its maturity after 3 years, the proceeds were reinvested in another depo....
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....45,000/- was made on 15.12.1995 or 15.12.1998. We have already noticed that the Learned. CIT(A) has given a finding that there was no fixed deposit corresponding to the credit advice found during the course of search. However, the said finding is in contradiction with the explanation given by the assessee, i.e., the assessee has offered contradictory explanations about the deposit of Rs.45,000/-, which means that the assessee is accepting the availability of a deposit of Rs.45,000/-. Under this situation, the question that arises is whether the deposit of Rs.45,000/- belongs to the assessee or to the society. Unlike other deposits listed out in the table extracted (Supra), it is not clear as to whether the above said deposit of Rs.45,000/- was accounted for in the books of the society or not. We have already noticed that the assessing officer has assessed the very same amount in the hands of the society also. There cannot be any dispute that the very same amount cannot be assessed in the hands of two persons. The assessment thereof has to be made in the hands of right person only. Under these circumstances, in our view, this issue requires fresh examination at the end of the assess....
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....low for the sake of convenience. "Coming to the investments in the name of Sri Karunanidhi, it is explained that Sri Karunanidhi is a musician who has been working for atleast last 10 years in various orchestras. It is further explained that as he is unmarried whatever savings he made out of his earnings are kept with his brother in the form of Fixed Deposits. It is further explained that after search Sri Karunanidhi filed his returns of income in which these deposits are reflected as his deposits. I have considered the explanation of the assessee. It has been the consistent stand of the assessee since the date of assessment that these deposits are belong to Sri Karunanidhi. On perusal of the investment standing in the name of Sri Karunanidhi it is seen that all the investments are made from 1995 onwards. The payments made to chit fund and Janachaitanya Housing (P) Ltd. are in the nature of monthly instalments made and such payments did not exceed Rs.50,000/- in any given year which are below taxable limit prescribed in those years. Natural corollary of this is that Sri Karunanidhi would have had income which is below taxable limit and hence did not file returns of income. Even ....